Interview: Mohammad Al Otaibi
How will recent regulations related to the new insurance law reshape the market going forwards?
MOHAMMAD AL OTAIBI: The insurance sector in Kuwait is poised for transformation, driven by executive regulations under the new insurance law. These are set to significantly reshape the market by enhancing operational frameworks, fostering market competitiveness and boosting consumer confidence. These regulations are expected to not only ensure a more resilient and transparent insurance landscape, but also introduce a higher level of professionalism and efficiency within the industry.
These regulations are a step towards meeting global standards, making processes more uniform, enhancing supervision and promoting competition. This approach aims to draw international investment, and create a fertile ground for innovation and growth. In addition, the new legislation is set to enhance protections for customers. We are moving towards more transparency about what policies cover and how claims are handled, and we expect more people to take up insurance.
What are insurance companies doing to adapt to emerging market segments and evolving demand?
AL OTAIBI: Insurance companies in Kuwait are adapting to emerging market segments and evolving demand by leveraging data analysis and technology. The postCovid-19 pandemic era has heightened consumer awareness of the benefits of insurance, further influenced by regulatory mandates. Companies are more focused on meeting the needs of individuals and businesses, and demonstrating agility in product offerings and customer engagement. This adaptability is crucial for tapping into new demand avenues and ensuring sustained growth in a competitive landscape.
Where can the sector contribute to achieving national economic growth and diversification targets?
AL OTAIBI: The insurance sector is uniquely positioned to contribute to Kuwait’s economic growth and diversification targets by offering risk mitigation tools that support investment and enterprise development. The industry’s solutions can facilitate a conducive environment for economic activity, thereby playing a pivotal role in long-term resilience. Recent volatility has underscored the importance of insurance in providing economic stability and security, leading to a nuanced impact on demand across different products.
To what extent can digital tools enhance insurance penetration in the Kuwaiti market?
AL OTAIBI: Digital tools present a significant opportunity to enhance insurance penetration. Critical factors for the sector’s digital transformation include the integration of advanced analytics for better risk assessment, streamlined claims processes and enhanced customer engagement platforms. The successful implementation of these tools depends on regulatory support, a skilled workforce and strategic investment.
By prioritising digitalisation, the insurance sector can achieve wider coverage, improved service delivery and greater efficiency. At the same time, the transition to digital insurance is being driven by consumer demand, with customers increasingly conducting business and making transactions on a smartphone or laptop.
In what ways do regulations influence penetration, fraud mitigation and risk management?
AL OTAIBI: The regulatory framework in Kuwait plays a pivotal role in shaping the sector’s future, particularly in insurance penetration, fraud mitigation and risk management. By establishing stringent compliance standards and fostering a competitive market, the framework encourages insurers to innovate and expand their services. Additionally, the focus on digital transformation is set to revolutionise how insurance products are offered, enhancing transparency and trust. This holistic approach reduces risk and ensures a robust foundation for the sector’s sustainable growth.
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